In 2011, a similar sinkhole emerged at the same campsite, again with no injuries.

The camp ground is within a national park and staff from the Department of National Parks, Sport and Racing are looking into the incident.

'IT WAS PRETTY SCARY'

Rainbow Beach newsagent Ruth Modin said she was told fishermen near the camp ground may have raised the alarm on Saturday night with the campers. Modin said the fishermen nearby MV Beagle first saw the sand moving.

"There was fishermen apparently nearby who said there was this noise and the next thing the sand just started moving out to sea," she said. "And suddenly there's this big sinkhole."

She said she had seen a video - on a local police officer's phone - of the sinkhole with a caravan in it.

"But there had been not one mention of anyone being injured or anything like that," she said.

Modin said campers coming into the shop on Sunday morning spoke about being terrified after they were told to immediately evacuate the area on Saturday night.

"It was pretty scary," she said. "It was dark and they were told to leave their vans and come back in the morning and hopefully they would still be there.

"But you've got to evacuate immediately, they were told."

Modin said she was worried the incident would make people frightened to camp at Inskip Point.

"MV Beagle is just one little area, it is not the whole coastline or anything," she said.

"It's a fairly big hole, but there is plenty of beach either side of it."